When the business collects Revenues, the result is
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- In which of the following cases will the business have Net profit ? a. Expenses are less than revenue b. Expenses are greater than income c. Expenses are equal to income d. Liabilities are greater than incomeWe can say that the business is in profit, when: Select one: a. Income exceeds Liabilities b. Assets exceed Expenses c. Income exceeds Liabilities d. Income exceeds ExpensesIn which of the following cases will the business have Net profit ? a. Expenses are equal to income O b. Expenses are greater than income Expenses are less than revenue O d. Liabilities are greater than income
- Payment of a divdend will : A. Decrease net income B. Increase net income C. Decrease retained earnings D. Increase retained earnings.FASB suggest that revenues are considered to be earned: a. at the point of sale b. throughout the earnings process c. when the company is entitled to its benefits d. when cash is receivedOwner's equity Select one: a. The resulting amount when total liabilities are subtracted from total assets b. When total liabilities are added to total assets c. None of Them d. The resulting amount when total revenue are subtracted from total cost of sales
- Which of the following normally has a net credit balance? A. Asset accounts such as cash, accounts receivable, inventory, and equipment B. Expenses that decrease retained earnings C. Dividends that decrease retained earnings D. Revenues that increase retained earningsNet loss: A. Decreases equity. O B. Equals assets minus liabilities. O C. Represents the amount of assets owners put into a business. O D. Is reported when revenues are larger than expenses.Profit is the difference between?a. Assets and liabilitiesb. Assets and equitiesc. The assets purchased with the cash contributed by the owner and the cash spent to operate the businessd. The assets received for goods and services and the amounts used to provide the goods and services
- Revenue Expenditures are Select one: O a. Short-life and must always be replaced to generate revenue for an accounting period O b. Reduces profit O c. All the above O d. Expenses are shown in Income SummaryWhat is the primary purpose of the Statement of Affairs ? a. To determine how much is owed by the customers b. To determine the amount for the owners equity c. To determine how is left in the bank account d. To determine if there was a gain or loss on disposal The term Margin is determined by which of the following operations? a. Adding all the incomes b. Dividing gross profit by sales c. Subtracting expenses from sales d. Multiplying capital by a decimal The Sandy Bay is a trader in sand. On December 31, 2010 the closing inventory was completely destroyed by flood rains. The following information is available: (1) Inventory at December 1, 2010 at cost $31,400 (2) Purchases for December 2010 $55,600 (3) Sales for December 2010 $88,800 (4) Standard mark-up is 25% Based on this information, what was the value of the closing inventory? a. $15,960 b. $17,760 c. $20,400 d. $25,800…| Owner's equity Select one: O a. The resulting amount when total revenue are subtracted from total cost of sales O b. When total liabilities are added to total assets c. None of Them d. The resulting amount when total liabilities are subtracted from total assets